The $400,000 they spent is now, effectively, an investment into their future product line. It's not a surprise that VCs see that $400,000 of free R&D isn't valu

The $400,000 they spent is now, effectively, an investment into their future product line. It's not a surprise that VCs see that $400,000 of free R&D isn't valueless. The actual individuals who funded this investment will see 0% of the return on it, while the company that fucked up plans on profiting from the software, hardware, and niche-specific expertise they developed while not delivering anything.